what’s next for packaging? - fppa€¦ · middle-class retreat (urban, educated, having fewer...
TRANSCRIPT
WHAT’S NEXT FOR PACKAGING?
FPPA Annual ConferenceColleen Twomey
Associate ProfessorCal Poly State University
San Luis Obispo, CA
First – Thank You
Packaging Trends■ Drivers
– What’s going on in industry
– What do the academics see?
■ Trends in packaging■ Design■ Sustainability■ Connected
Consumers■ E-Commerce
Drivers shaping megatrends and ultimately consumer markets (Euromonitor)
With the rising importance of emerging and
frontier markets, and
fears over advanced economy
stagnation, the global economy has witnessed
a paradigm shift.
Technology plays a pivotal
role in consumer decision-
making and the ability of
business to meet the needs
of today's consumer.
Competing demands and
supply constraints
combine with economic,
environmental and geo-
political risks to create
pressures on environmental
resources.
As the global population
approaches 8.0 billion,
demographic shifts are
combining to reshape
consumer lifestyles and purchasing decisions.
From consumers to governments, beliefs about the world are
constantly evolving, shaping
priorities, perceptions, attitudes and motivations.
0 10 20 30 40 50 60
Mexico
UK
Brazil
Germany
Russia
Japan
Indonesia
India
USA
China
GDP at PPP, trillion international dollars
Top 10 Economies 2030GLOBAL ECONOMYWILL DOUBLE INSIZE AND REACH$256.1TRILLION IN TERMSOF GDP AT PPP (PURCHASING POWER PARITY)
IN 2030
Driver 1: Shifting Economic Power
10 Fastest Emerging Markets
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
Côte d'Ivoire
Sierra Leone
Laos
Philippines
Bangladesh
Mozambique
Rwanda
Myanmar
Ethiopia
Guyana
Average annual real GDP growth, %
10 Fastest Growing Emerging and Developing Countries 2018-2030
Source: Euromonitor International from national statistics/Eurostat/OECD/ UN/IMF
Driver 2: Technology
3.6bnGlobal internet users as of 2018, which equates to half of the population.
31%of connected consumers prefer online communication rather than other means.
53%of connected consumers report they would be lost without the internet.
■ The always-on consumer
Driver 2: Technology
0
10
20
30
40
50
60
70
80
90
100
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Consumer Access to the Internet Globally 2017-2030
Percentage of Population Using The Internet Percentage of Population Covered by at least an LTE/WiMAX Mobile Network
Driver 3: Population Change
POPULATION (BILLION)
8.5MEDIAN AGE (YEARS)
32.8
World Population Statistics 2030LIFE EXPECTANCY (YEARS)
74.4
Population by Urban/Rural Location 2030
Source: Euromonitor International from national statistics /UNNote: Top 10 cities are based on the biggest cities by forecast population in 2030
Driver 3: Population ChangeUrbanization MigrationAgeing
61.0% of the world’s population will be urban in
2030. There will be 38 megacities - cities with
populations over 10.0 million.
995 million people will be aged 65 or over in 2030. One
quarter of them will live in China.
Net migration will account for more than half of population growth to 2030 in Western
Europe, Australasia and North America.
Three major demographic forces shaping the world
Driver 4: Environmental Shifts and Pressures
Ethical consumers
War on plastics
Circular economy
UN sustainable development goals
Going beyond regulation
Driver 5: Changing Values
0
2
4
6
8
10
Long-term financialsecurity
Establishingfinancial security
Spending leisuretime doing my
favorite activities
Being wealthy Satisfying Work Following mypassion(s)
Spending money tomake life
easier/better
Making asignificant
difference in theworld
% o
f res
pond
ents
Baby Boomers Generation X Millennia ls Generation Z
Source: Global Consumer Trends Survey 2017
Financial security key priority for baby boomers, but for gen Z, it’s all about their passions in 2017
Mega Trends■ Experience More (over “stuff”)
■ Shifting Market Frontiers (growth in Asia/Africa, ageing population)
■ Healthy Living (greater awareness of health and nutrition)
■ Ethical Living (resources, environment, sustainability)■ Middle-Class Retreat (urban, educated, having fewer children)■ Premiumization (Ageing consumers, smaller families drive
demand)■ Shopping Reinvented (convenient and technology-advanced
experience)
■ Connected Consumers (rapid urbanization and pop growth will give rise to more connected consumers)
What can that mean for packaging?
■ $ 839B 2015 –$ 998B 2020 (3.5%)■ Global growth not
even– Emerging
countries– Established
region changes in demographics
https://qz.com/622211/finally-marijuana-packaging-that-doesnt-look-like-it-was-designed-by-a-stoned-teenager/
Source: PIRA
What can that mean for packaging?
■Design trends (with the brain)■Sustainability■Connected Consumers■E-commerce
Design Trends
– …”attractive vs. neutral packages evoked intensive activity changes in brain regions associated with an impulsive system..” (Hubert, 2013)
– ???– Attractive packaging
increases impulse buying!!!
Design Principles
–Color–Shape–Symbol–Typography
Cred: Andrew Hurley
Color
Color Associations
Color Associations
Color Associations
packagingdigest
Americans complained that the Coke in the white can tasted less sweet
Cope.com
Many other examples…
■Typography■Label shape■…
Design Trends in Packaging
■Retro/Vintage
Design Trends in Packaging■Sequencing
Design Trends in Packaging
■ Typography getting “hip”
Design Trends in Packaging
■Minimalism (essentialism)
Design Trends in Packaging■Humor
Design Trends in Packaging■Humor
Design Trends in Packaging■Humor
Neuroscience
“After the eye, the hand is the first censor to pass on acceptance, and if the hand’s judgment is unfavorable, the most attractive object will not gain the popularity it deserves. On the other hand, merchandise designed to be pleasing to the hand wins an approval that may never register in the mind, but which will determine additional purchases… Make it snuggle in the palm.”
Sheldon and Arens, 1932
Design Trend: Tactile and Decoration
Design Trend: Tactile and Decoration
Design Trend: Tactile and Decoration
Sustainability■ Flexible material trends
– Move from paper to plastic– Light-weighting– Move from rigid to flexible (consumer
convenience)■ Demand for pouches in the US – 4.6% per
year to $9.4B in 2018 (Freedonia)– Increased use of “Bio-plastics”■ Fossil fuel costs■ Reduced carbon footprint■ New generation bio-renewable
technologies– Smith Pira – Future of Bioplastics for
Packaging to 2023
Examples
spence
• Coke bottle• 30% Brazilian cane sugar• 2020 goal of having a completely
renewable plant based and recycled PET plastic bottle
• DANONE Yogurt• PLA• Improve carbon footprint of Activia by
25%• Cut use of hydrocarbons 43%
• Packaging gateway.com
Be careful…..
Sustainability
■ “Sea Change”
Sustainability
■Creating more relationship between brands and consumers–How2Recycle
Carton and Corrugated
■ E-commerce/International Trade■ Downsizing■ Single Serve■ Printing techniques■ Smart Packaging ■ Growth in emerging countries■ New markets (wood replacement)
– Projected to reach $294.3 billion by 2023 (globally) Freedonia
Examples■ Tetra Top (liquid packaging, coatings)■ Corrugated Cases (RRP)
Packworld.com
Tetrapak.com
• Convenient products becoming a key need for 'on-the-go' consumers looking for instant gratification.
Designing for Sustainability
Be careful of “eco” inks – not all of them can be recycled!
■ QR experience– QR codes as a means for marketers to bridge the gap
between the physical and the digital worlds■ NFC Experience
– A recent survey by Epsilon and GBH Insights found that 80% of customers are more likely to make a purchase when brands offer bespoke (custom) content.
■ AR Experience– Augmented reality is most effective during the search and
evaluation phases of the buying process.
• The use of technology needs an incentive for Millennials and Z-ers (why should they interact with the package?)
• Experiences with the technology need to be memorable and relevant
• Don’t expect Millennials/Z-ers to pay more for interactivity
• Technology needs to work on all mobile platforms• Millennials/Z-ers don’t have the attention span to
wait for technology to work – if the technology takes too much time, they have already moved on
That said….
Other■ DigiMarc– “invisible” barcode– Conversion of
pixels to readable data
– Greater accuracy and speed at checkout
– Engagement via coupons, loyalty programs, etc.
E-Commerce
■ Customize (Digital)■ “The Unboxing
Experience”■ Integrated
Marketing Communications
Customize■ Digital Printing is in all areas of packaging - $28B by 2023
– Quality– Volume– Color– VDP
■ But– Print – to – Die speeds– Heavy use of spot colors– Expense– Installed base– ….
■ Integrate?marketsandmarkets
Customize
Examples
The “Unboxing Experience”
■ Youtube….?■ Amazon
Frustration-Free Packaging■ Subscription
Boxes
Example
Opportunities for Design!■ Subscription Boxes!
Let’s think INSIDE the box!
Integrated Marketing Communications■ Digital Shelf – Who cares about e-commerce and
online orders?– Product assortment– Multiple images of a product– Videos– Descriptions– Ingredients– Instructions– Pricing and promotions…
Unilever■ Close to 10% of retail sales
are now online, and 50-70% of these purchases are made on a mobile device■ Unilever saw 24% increase in
sales with optimized hero images over product shots■ Other CPGs are following
Opportunity?■ Rich, high-quality product content
– Digital package– Lifestyle images– Video Content– Descriptive Copy...
Packaging Trends■ Drivers
– What’s going on in industry
– What do the academics see?
■ Trends in packaging■ Design■ Sustainability■ Connected
Consumers■ E-Commerce
Thank you!